The statements in this section merely provide background information related to the present disclosure and may not constitute prior art.
The U.S. is currently flaring so much stranded natural gas that the gas flares are visible from outer space. The world as a whole annually flares about 5,000 billion cubic feet (BCF) of stranded gas. This is equivalent to the annual gas usage of France and Italy combined, and represents about 5% of the world's gas production. It is estimated that in North Dakota alone, where oil production from fracking reached 1 million barrels per day, around 36% of North Dakota's associated gas was flared in 2014—about 120 BCF/yr. All of this flare gas produces significant quantities of CO2 emissions, estimated to be about 7 million tons of CO2-equivalents in emissions from North Dakota's flaring, or the emissions from about 1.3 million cars, while producing no useful product. Furthermore, North America is facing a vast abundance of natural gas generally, driving natural gas prices to historical lows, making it an ideal feedstock for liquid fuel production.
Flaring of natural gas entails significant loss of income for oil and gas producers that could be earned by selling the natural gas product. Still more financial losses are entailed by failing to make use of the energy content of the flared gas to generate power. As a result, such producers have to buy their electric power from the grid, or even worse, generate it themselves at significant cost (typically USD $0.40/kWh) through the use of on-site diesel generators consuming expensive diesel fuel. Furthermore, the large-scale flaring of natural gas has raised environmental issues that could cause state and/or federal regulators to take action to fine, shutdown, or highly regulate their operations.
The United States oil and gas industry annually flared approximately 7.1 billion cubic meters (bcm), or 250 billion cubic feet (bcf) in 2011 (Source: Global Gas Flaring Reduction Partnership, Estimated Flared Volumes from Satellite Data, 2007-2011, 2013). “Flaring will escalate as oil producers approach the milestone of 1 million barrels a day from the Bakken formation, a 360-million-year-old shale bed two miles underground. About 10,100 wells produced 29 million barrels of oil in January 2014, according to the North Dakota Industrial Commission. Drillers flared 340 million cubic feet (mmcf), or 34 percent, of the 1 billion cubic feet of natural gas produced per day in January 2014, about twice as much as the 184 million cubic feet burned per day in 2011, said Marcus Stewart, an analyst at Denver-based Bentek Energy. ‘The lost revenue adds up to $1.4 million each day,’ said Stewart. Energy executives say economic realities force them to start producing oil from wells before infrastructure is in place to haul away less-valuable natural gas.” (Source: Jennifer Oldham, A Landscape of Fire Rises Over North Dakota's Gas Fields, Bloomberg News, Apr. 7, 2014)
Canada also has a significant flaring problem. It is estimated that Canada flared 2.4 billion m3 per year in 2011 (Source: Global Gas Flaring Reduction Partnership, Estimated Flared Volumes from Satellite Data, 2007-2011, 2013.) It is estimated that the Canadian province of Alberta alone flared 868 million m3 and vented another 333 million m3 in 2007. (Source: Bott, R. D., Flaring Questions and Answers, 2nd ed., Canadian Centre for Energy Information, 2007.) A similar situation holds around the world, with significant quantities of gas flared in Russia, Nigeria, and other parts of the world.
This flaring produces significant quantities of CO2 emissions while producing no useful product. If this waste flare gas could be utilized for powering transportation vehicles, used to produce liquid fuel, and/or transported for sale to market, significant environmental and economic benefits would accrue.
Furthermore, gas produced as a by-product of fracking shale for oil is often rich in natural gas liquids (NGLs), including but not limited to in the Bakken formation of North Dakota, United States. Although natural gas prices are at a historic low in the United States, the high concentration of NGLs justifies gathering and processing the gas. However, as gas gathering infrastructure is put into place, and statutory restrictions kick in after 12 months after initial drilling, flaring on old wells may be reduced. Unfortunately, newly drilled wells as well as wells far from pipeline infrastructure will continue to be flared. This high variability and uncertainty in flaring quantities make it extremely difficult to plan and effectively size traditional gas gathering and pipeline infrastructure in order to minimize flaring.
It is highly financially and environmentally disadvantageous to flare valuable natural gas that could be sold for profit. It is even more financially and environmentally disadvantageous to utilize large quantities of gasoline for transportation vehicles while at the same time flaring a feedstock that could be doing the same job. The problem is that liquids-rich raw natural gas cannot be used in gasoline engines directly, and cannot be easily transported by truck.
Therefore, there exists an important need for a solution to address the problem of utilizing raw natural gas (wet or dry), which may have significant quantities of NGLs, to the maximum extent and to minimize or completely eliminate flaring, while still meeting the operators' requirements of a highly variable and uncertain flow rate in the raw natural gas stream.
Accordingly, as recognized by the present inventors, what are needed are a novel method, apparatus, and system for converting raw natural gas into a liquid stream that can be easily transported by truck, and that can be utilized for transportation and/or power generation, or for other purposes in existing equipment. As recognized by the present inventors, what is also needed is a liquid fuel synthesis system that is compact, portable, and modular, and which can be easily and quickly delivered to, as well as removed from, flare gas sites as flaring volumes change and as natural gas infrastructure matures.
Therefore, it would be an advancement in the state of the art to provide an apparatus, system, and method for producing a liquid fuel from a raw natural gas source at or near an oil or gas site that flares its associated gas. It would also be an advancement in the state of the art to provide a compact, portable, and modular liquid fuel production apparatus.
It is against this background that various embodiments of the present invention were developed.